Two weeks ago, one of our analysts asked me to have a look at Jaya Holdings.   After going through the financials, i realised it had large debts, was in some financial difficulty, had engaged N-Tan to advise on a restructuring  hence its poor performance compared to its peers.

My first instinct was to try and see management and after some effort were informed that as the company was trying to secure a financial restructuing scheme, it would not be appropriate to meet.  I read last Friday that the High Court had approved with creditor support a restructuring scheme for the company's debt.  This should be positive but I couldnt find any information on what the scheme involved.  I am worried here about some capitalisation of the debt which could be dilutive for existing shareholders.  The Q1-2010 results showed the impact of the financial problems with revenue and operatng profit down by 36% and 41% respectively but net profit was higher from some vessel sales.   Overall the health position seems to have bottomed and once a creditor scheme has been announced - we can evaluate the impact on existing shareholders.  

Keep in view for now.....until the restructuring details especially with regard to the capitalisation of debt (if any) are announced.